COMMENTARY: As lieutenant governor, I have traveled hundreds of thousands of miles throughout New Mexico meeting and talking with our diverse population. Together, over the past eight years, we have worked hard to make New Mexico’s economy the most competitive and open in the nation.
Courtesy photo
John Sanchez
Our tax policy has brought the burden on manufacturing and construction industries to the lowest in our nine-state, western region. According to the Federal Reserve Bank of Philadelphia, New Mexico is ranked No. 1 in the nation as the state that has had the most job and wage gains since President Trump took office in January 2017.
Data from the U.S. Bureau of Economic Analysis (BEA) shows that New Mexico’s per capita personal income (PCPI) grew from $33,109 in 2010 to $37,938 in 2015, representing an increase of 15 percent.
Numbers don’t lie; New Mexico is moving in the right direction.
International markets are essential to New Mexico’s economy. That’s why I have worked to internationalize my office, traveling throughout Europe, Asia, and the Middle East promoting New Mexico and the benefits of trading with our state. It is essential that this trade is fair, free and without tariffs. When this is the case, American innovation and work ethic will always compete successfully in the global market. While the President’s recent trade negotiations have been nonconventional, we are beginning to see results.
Last week, President Trump announced the United States Mexico Canada Agreement (USMCA). While this agreement is not perfect, it promises to bolster the economy of New Mexico in several important ways. This agreement knocks down barriers for New Mexico’s dairy industry into Canadian markets. It expands the opportunity for New Mexico’s growing manufacturing industry and will allow innovation and profitability to increase. Additionally, it protects the intellectual property rights that are critical to New Mexico’s high-tech industries.
New Mexico is ranked ninth in the United States for milk production and fifth in cheese production. Prior to this agreement, Canada has allowed low-priced dairy ingredients to undersell United States dairy products through its class 7 pricing system. This new agreement eliminates this class and opens this market to competition from New Mexican dairies. Canada currently ranks as New Mexico’s 4th largest export destination and, once this trade agreement is in place, we’re set to export even more.
Our Borderplex region is the fourth largest manufacturing hub in North America and its continued growth requires dynamic free trade with Mexico. The new labor rules that were negotiated mean the Mexican worker will finally receive a living wage in automobile and parts production. This is a win for both Mexican and American workers.
There will no longer be an incentive to send American jobs to Mexico. As jobs in the auto industry return to the United States, New Mexico will benefit. The leading products of New Mexico’s manufacturing industries are computer and electronic equipment. Silicon computer chips are produced here, making this sector worth about 80 percent of our manufacturing industry. New American cars depend on computer and electronic components, and as such, this sector will thrive in New Mexico.
With new intellectual property rights protection, New Mexico innovators will have the same safeguards in Canada and Mexico that they enjoy in the U.S. This protection will cover the intellectual capital of everyone from agricultural innovators to the creators of original content in the entertainment industry. As high tech trade becomes an even greater part of our economy, this agreement ensures that data can be transferred across borders safely.
As long as the exchange of goods and services between borders remains free and without tariffs, New Mexico’s export economy will thrive.
Personally, for the next three months and beyond, I will keep fighting for the prosperity of New Mexicans. Reward for the hard work of our people is long overdue.
John Sanchez, a Republican, is New Mexico’s lieutenant governor. Agree with his opinion? Disagree? NMPolitics.net welcomes your views. Learn about submitting your own commentary here.